An Analysis of Decentralized Autonomous Organizations and Their Use Cases
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2022
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Abstract
AUTHOR-SUPPLIED ABSTRACT: Abstract: This paper provides an introduction to Decentralized Autonomous Organizations (DAOs), examining their use cases and comparing them with traditional hierarchical organizational models, with a focus on cost efficiency and transaction costs. Through secondary research, the concept of transaction cost theory and decentralization is established. The paper also explores the potential of blockchain technology and DAOs, highlighting use cases and future prospects. Primary research consists of semi-structured interviews with industry experts and DAO members. The results reveal variations in DAO formulations, a lack of societal utility-based use cases, and the potential risk of increasing the digital divide. While several benefits are identified, DAOs face challenges due to an insufficient legal framework and disagreements on the extent of cost savings in transaction costs. The paper concludes that further research is necessary, emphasizing the need to strengthen the existing qualitative research with extensive quantitative data models. Potential approaches for future research are presented. Keywords: Decentralized Autonomous Organizations, DAOs, hierarchical organizational models, cost efficiency, transaction costs, transaction cost theory, decentralization, blockchain technology, use cases, legal framework, digital divide, primary research, secondary research, qualitative research, quantitative data models